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Xiaonong Su became the CEO of Dingyi Group Investment Limited (HKG:508) in 2011. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Dingyi Group Investment
How Does Xiaonong Su’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Dingyi Group Investment Limited has a market cap of HK$3.8b, and is paying total annual CEO compensation of HK$478k. (This number is for the twelve months until 2018). While we always look at total compensation first, we note that the salary component is less, at HK$442k. We examined companies with market caps from HK$1.6b to HK$6.3b, and discovered that the median CEO compensation of that group was HK$2.3m.
A first glance this seems like a real positive for shareholders, since Xiaonong Su is paid less than the average compensation paid by similar sized companies. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Dingyi Group Investment has changed over time.
Is Dingyi Group Investment Limited Growing?
Dingyi Group Investment Limited has increased its earnings per share (EPS) by an average of 60% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -46%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Dingyi Group Investment Limited Been A Good Investment?
Given the total loss of 12% over three years, many shareholders in Dingyi Group Investment Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
It looks like Dingyi Group Investment Limited pays its CEO less than similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. Unfortunately, some shareholders may be disappointed with their returns, given the company’s performance over the last three years. We’re not critical of the remuneration Xiaonong Su receives, but it would be good to see improved returns to shareholders before the remuneration grows too much.